Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
& c  x8 |7 F$ b$ }companies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
5 t0 c4 L9 r* A% C7 p5 xcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
, V4 k: z3 \9 I; \A year ago these things would have spiked the price of crude oil by at
2 y" X8 p0 Z, b2 Oleast $50.00 per barrel. Today, oil price declined by a record amount.

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There are several reasons the price of oil is decreasing in the face
! r  ?9 J1 y$ I6 Eof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
; m  I+ L. n! LArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
/ W( @1 w6 M3 \' i9 d0 t* ^  i7 BThis is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


5 k5 _( I& R' D5 g$ P* m4. Production of bio-fuels is beginning to reach critical mass. Bio
+ A' U5 I9 ~0 @1 g3 }- kfuel is being produced from many plants and algae. The production
: j+ H. v! P  |* Lpotential per acre in some cases is astounding. Many countries are
7 R4 Y6 @' p* V8 w* lracing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
* _2 |: D( R+ a, Ito bio-diesel producers. One pork processing plant in Oklahoma is
8 d5 u9 i4 r( n8 b/ \producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
; K; k) A4 x  K6 i# m+ texpected to be built in the future. Much of the energy they produce
0 [* J/ k" X' Fwill replace oil.
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7. Every company in any form of transportaion business is replacing
3 \. N/ |1 p, ?6 }older equipment such as trucks, airplanes, train engines, ships, etc.
9 y0 J* H. u: w# ]with new more fuel efficient equipment. Airlines and railway companies
1 v! S" r9 F  k4 [7 }4 B( g# A. Lare experiencing 20% to 25% better fuel econony with the new
8 x, ?! g: B! J+ l* ]0 aequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
; w, I$ A7 z, K/ f0 i$ C/ Sfuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
7 I9 I) S' Q) Kavailable at very little cost or risk. The gas is displacing crude
$ n" j2 @0 n: g4 q7 I5 R2 E  X: _# P, noil.
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# r/ V) x2 V, E) E6 G! G; V9. Coal is being transformed into a clean burning liquid fuel. The CO2
1 h, V/ h% R0 v4 y  X/ tproduced as a byproduct is sold to oil companies for injection into
/ t8 d9 ?! w% r$ m) L0 y' roil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
' X' S# A% p; Q& g- A4 Wsource. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
9 M& z  W( {: b' e7 G, `price of crude oil but the sum of all of them together is world
5 R* i* v$ R1 E8 s: ^) G: U  L# Nchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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( B+ Q  }& c& H1 o9 A9 r- UWith the above scenario, I still believe that there are under
: Y6 J* t2 K% S$ bperformed OIL companies and probably they are yet to get the justified
value .....
2 ^- ^+ Y& j7 ^2 w7 A- G, k# uIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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( o9 ?& ~( y  i7 p, w# oThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
& R7 G5 I4 ]3 s% G& w) w$ B( g2009 ... FYI-Only